I think retailers knew this year would be a challenge. Consumer attitudes are changing (housing expenses, rising taxes, inflation, medical expenses, cost of utilities???). Disregard the cheerleading as exactly that; I know they sense that all is not well.

In the past few years the major chains have extended the holiday season to the point of being ridiculous, making the consumer feel more and more like a target. It seems the Christmas season now begins at midnight on Halloween. This year, I began seeing Christmas items before the leaves even began to fall! My six-year-old son (who, like all first-graders, LOVES Christmas) said after a visit to the mall in early November, "This really isn't fair to Thanksgiving." I think his point of view is becoming popular. People are disgusted by the rampant consumerism (those missing their turkey to line up at Best Buy excluded.)

I've spoken to quite a few people who are trying to "not get so crazy" this year. I, too, have not had any problems getting a great parking spot at the mall (in previous years I practically needed a shuttle service!) Grab Bags seem to be more popular and a large number of parents in my area (middle to upper middle class) are really scaling back, focusing on buying a few special gifts and then spending time with their kids making cookies and decorating ornaments. Everyone (yes, everyone) I've spoken to is buying less and trying to come up with interesting, personal gifts (meaning not something that would be found in the aisles of Target). I've noticed a reticence to spend money on "little extras".

I'd like to think this is coming from a good dose of true Christmas spirit, and it may be, but I think a fair amount of us are really strapped. At the close of 2006 we are taking a hard look at all the ways we took it on the chin this year (gas, groceries, medicine, utilities, property taxes, resetting ARMs, etc.); and deciding that starting a shaky looking 2007 with hefty credit card debt probably isn't a such a good idea. I think that message is finally filtering through our thick American skulls!